CLIENT CASE STUDY

Nutrition company: Accenture helps expand footprint in China

Streamlined processes and solution support for full reimbursement improve compliance and profitability.

Overview

Gaining a stronger foothold in China was a key priority for a leading nutrition company. Managing trade promotions in such a diverse market proved complex; it dealt with 75 distributors and over 38,000 retailers, many of them small stores. To improve profitability and compliance, the company wanted to move to a full reimbursement model that requires distributors to prove that the promotion took place and pay retailers promptly. It collaborated with Accenture to enhance trade promotion processes and implement the Accenture CAS TPM solution for 235 users.

Using Accenture’s innovative Accelerator implementation methodology, the team minimized customization and got the solution up and running in only a few months. Now that the company has an automated system, employees no longer need to toil over paperwork and can track promotional spend from planning to post-event analysis. The solution has helped the company launch new products into the market with special promotions. Built-in controls help to limit spend. The company is using the solution to help identify the most profitable promotions and reallocate spend accordingly to improve profitability.

Opportunity

China is an important, growing market for the nutrition company. The company, however, relied on manual processes to manage its trade promotion management (TPM) investments. Given the market complexity of multiple customer channels spanning 38,000 retailers—many of whom are small “mom-and-pop” shops—the company struggled to get visibility into its considerable promotional spend. It also aimed to move to a full reimbursement model for trade promotion spend, which requires distributors to prove the promotion has taken place before they are reimbursed, helping to increase transparency, control and compliance. To support the new model, the company required a new, integrated TPM solution that would give the company greater visibility into its promotional spend to improve return on trade investments. It collaborated with Accenture to implement simplified processes and the Accenture CAS TPM solution.

Solution

Accenture applied its template of recommended practices for TPM in emerging markets, using its innovative Accelerator implementation methodology. Together, the company and Accenture worked side-by-side over a defined period of time to focus configuration priorities and minimize customization, helping to significantly speed up the implementation time. The new processes also helped the company strengthen store level planning capabilities, build a reimbursement model and close the trade promotion management loop. To support the new reimbursement model and processes, the team implemented the Accenture CAS TPM solution, tapping into Accenture’s Global Delivery Network and industry advisors to get the solution up and running in only a few months. The system is integrated with the company’s SAP ERP system, and promotional data is reflected in company financials in near real-time.

Results

With its new solution and processes, the company’s 235 users can increase transparency and trade spend compliance with 75 distributors, who now provide data to show that promotions have taken place. It has also helped the company launch a new product in the market with special promotions. By gaining greater visibility into store-level promotional spend, standardization and controls, it can track investment from planning to post-event analysis. The company can now identify its most effective promotions and reallocate spend accordingly to improve return on investment. The new Accenture CAS TPM solution will help serve as a scalable foundation to further optimize trade promotion with forecasting capabilities. The trade promotion management system allows the company to improve compliance and build better connections with its customers and consumers.

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